The Fiscal Cliff bill is a fraud on the middle class. It gives a sugary but necessary treat by continuing unemployment insurance to the chronically unemployed, continued education assistance, etc.
While the Republicans have been successful in framing the budget deficit as an entitlement problem, it has been the biggest successful lie told.
Firstly, a strong safety net does not take money out of the economy as that money is spent immediately back into corporations that service those on the safety net. The successful lie is that somehow that depresses economic activity. What it does is causes higher taxation that prevents a select few to hoard capital. This is fact.
Secondly, the bill continues to treat most income from capital appreciation (capital gains) differently than the working person’s income (mostly the middle class). Since 90% of all financial assets are owned by 10% of Americans and since the markets have a bias to positive growth, it is a mathematical fact that their wealth will grow much faster than that of the middle class for no reason other than them being owners of capital.
Thirdly the fact that the estate tax remains 0% on up to five million dollars or more, as well as a rate of 40% that allows transfer of wealth within families to create “feudals” creates a system that is summarily un-American. Eventually we get a class of people that will never have to work again yet they will control the economy and the lives of us all.
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Copyright 2013 Egberto Willies